I'm in a unique position financially and there's not a lot of people I feel like I can talk to about the topic. Any advice is appreciated.

I'm 33, live in HCOL area, with a net worth of about 3.2M (400k SEP IRA, 2.5M index funds, $300k cash/misc). No debt. Renting. Married with an infant at home. Spend about $120k/year (plan to move to a less expensive area next year, probably will cut expenses to about $95-100k).

I made an income doing a few things that aren't likely to keep making me much money (it's not trading, but similar to the concept of if a trading market went away and successful traders in that market weren't earning much anymore). I have experience managing people and building small businesses, but they are very niche. In short, most would agree I'm a smart and hardworking person, but I probably don't have any single skill that checks a "we should hire this guy" box.

My wife works in education and would like to take some years off to raise the kid(s) (in other words, she will never be a significant earner). I feel like I am at a crossroads. We have enough money to be very comfortable but not enough to retire, I have no specific career path, no guaranteed income, and all the time in the world to explore new things. I realize this is a good problem to have, but it's still a problem.

I think I could network my way into a job that pays high 5 figures, maybe low 6 figures best case scenario. I also could use some of the money I've made to start something new (which I have done a couple of times before, albeit in a niche that no longer is a great opportunity). I know I can't get specific advice because I'm being vague about the career, but I'm really just looking for general advice on how people would approach this problem.

My feeling is that I would be happier trying to build my own thing which is what I have alway done, but that it's "now or never" to try to get a more traditional job and build normal work experience should I ever want or need to go the corporate route. I don't think it would be easy to get my first "real" job when I'm 40+, and it's already probably not that easy now.

I do realize that worst case scenario we can move to a lower cost of living area and basically retire (especially when wife goes back to work), but I would prefer not to do that. Thank you.

With expenses at 95-100k (next year) and your stated net worth, I'd retire and do whatever you think is fun that brings in enough money to pay its own way. Run a small local business for fun and only worry about making enough money to keep the lights on and be happy, go work for a company who does work you are passionate about instead of one that pays top dollar, or take a few years off and enjoy time with the young family.

With an infant at home, it may be a perfect time to take a 5-year retirement, then when the kid(s) get into school, decide what you want to do. Might be a good time to go back to school part-time or take some certification courses in something you like. Or take a lower-paying job in something you really love that has a good work-life balance.

If you plan on using your assets + your wife's salary to cover expenses maybe you could do just go ahead and do something your passionate about.

I would rather not try to use assets to cover my lifestyle. Of course this is the fall back plan. I don't really have that many things I am passionate about except for my former career. I had to work pretty hard in order to succeed doing it. But I agree that it's a good thing to start thinking about and see if I could turn a passion into a small business or job offer.

You are very lucky. You can do literally anything you want to do. Go to med school, law school, both, whatever you want. I admire your desire to do something.

Don't get stuck on "specific career path", "guaranteed income", "maybe low 6 figures", "now or never", "traditional job", "normal work experience", etc. You don't quite have enough to very safely stop earning money for the rest of your life, but you're close. Waiting tables could probably make up the difference. Take some time--literally years if you need it--and find a passion.

I would work on your skills, maybe go back to school in whatever you're interested in that has a healthy job market. Network and research your interests. Most importantly live frugally and you won't have to really do much if you don't want to or can't.

I'm not sure what you mean by 1. I'm kind of acknowledging it's the end of the line for my former job. And I know I did get lucky, that's why I'm trying to be realistic about my future career prospects.

For 2, not a problem. I'm just doing the standard low fee try to match the market returns approach.

I can't imagine anyone having that level of success at your age ever enjoying going to work for someone else making +/- 100k. There's a lot of soul crushing nonsense that goes on in the corporate world at that level.

Sorry I have no advice, it is a weird age to be at that crossroads with that net worth.

You are very lucky. You can do literally anything you want to do. Go to med school, law school, both, whatever you want. I admire your desire to do something.

Don't get stuck on "specific career path", "guaranteed income", "maybe low 6 figures", "now or never", "traditional job", "normal work experience", etc. You don't quite have enough to very safely stop earning money for the rest of your life, but you're close. Waiting tables could probably make up the difference. Take some time--literally years if you need it--and find a passion.

Thanks. This is really helpful. I sometimes find myself getting down about how I don't have $5-$7 million because then I really think I would just "very safely" stop earning money and truly live a life of leisure while my kids are young. I don't feel comfortable enough to do that now and it stresses me out trying to balance the idea of enjoying how lucky I am vs trying to make sure my family is still in a great position 25 years out. I'm not someone who is good at just sitting around and doing nothing either so it makes for a weird dynamic.

I probably do just need to find something I am really passionate about and take literally any job I can in that area. Even if my wife and I collectively made $100k/year starting in 5 years (and she will make $60k+ so that is doable) it would pretty much guarantee we could live off that + some assets and be very comfortable.

I'm in a unique position financially and there's not a lot of people I feel like I can talk to about the topic. Any advice is appreciated.

I'm 33, live in HCOL area, with a net worth of about 3.2M (400k SEP IRA, 2.5M index funds, $300k cash/misc). No debt. Renting. Married with an infant at home. Spend about $120k/year (plan to move to a less expensive area next year, probably will cut expenses to about $95-100k).

I made an income doing a few things that aren't likely to keep making me much money (it's not trading, but similar to the concept of if a trading market went away and successful traders in that market weren't earning much anymore). I have experience managing people and building small businesses, but they are very niche. In short, most would agree I'm a smart and hardworking person, but I probably don't have any single skill that checks a "we should hire this guy" box.

My wife works in education and would like to take some years off to raise the kid(s) (in other words, she will never be a significant earner). I feel like I am at a crossroads. We have enough money to be very comfortable but not enough to retire, I have no specific career path, no guaranteed income, and all the time in the world to explore new things. I realize this is a good problem to have, but it's still a problem.

I think I could network my way into a job that pays high 5 figures, maybe low 6 figures best case scenario. I also could use some of the money I've made to start something new (which I have done a couple of times before, albeit in a niche that no longer is a great opportunity). I know I can't get specific advice because I'm being vague about the career, but I'm really just looking for general advice on how people would approach this problem.

My feeling is that I would be happier trying to build my own thing which is what I have alway done, but that it's "now or never" to try to get a more traditional job and build normal work experience should I ever want or need to go the corporate route. I don't think it would be easy to get my first "real" job when I'm 40+, and it's already probably not that easy now.

I do realize that worst case scenario we can move to a lower cost of living area and basically retire (especially when wife goes back to work), but I would prefer not to do that. Thank you.

If I found myself in your position... I would find a few things I am passionate about that I want to enjoy doing the rest of my life and make contributions to those efforts. Focus on being a parent and raising an awesome kiddo or two... and support the marriage.

My wife and kid will have health insurance through her former employer for almost another 6 months or so. After that she can go on the insurance plan I have and will have as long as I continue part-time with my former career (I'm still working part time, not as successfully as in the past but still making some money). Putting them on the plan will be $1k/mo, and I budget $1500/mo when I completely quit.

My wife works in education and would like to take some years off to raise the kid(s) (in other words, she will never be a significant earner). I feel like I am at a crossroads. We have enough money to be very comfortable but not enough to retire . . .

You actually do have enough to retire, depending on how much you spend, but more importantly, you have enough not to make how much you earn a critical matter in what you do with your time. You can choose to do relatively low-paid or even volunteer work if you want to.

Sounds like a great idea for you both to take a few years to spend with your child. You don't know exactly what to do right now career-wise but that's fine, you don't need to know now. You have time to think about it and it will eventually come to you. Focus on what's really important to you. Not many kids are lucky enough to have two parents free to spend most all their time with them.

I understand why many comments are towards starting your own business. I think if you have the right business idea and the right skills to make it successful, that would be a natural path. I would be concerned about starting a business just because you don’t see an available alternative that you like. You have enough assets now to probably never work again, especially if your wife returns to teaching in a few years. However, great sums have been lost by people try to start their own business. Doing nothing is financially better than losing a million dollars on a failed business.

Since you have financial flexibility, you could work for a small business for less money but better working conditions than a mega Corp. You could even use this path to gain the knowledge you would need to start your own business in a new discipline.

If I were you, I would think long and hard about how your decision will affect your child(ren). I would make damned sure my children didn't see me as lazy, without passion, or without direction despite my early success, for fear that they would emulate my example.

Remember, they will not know the person who created this success. They will only know the person you'll become in the next phase of your life.

I understand why many comments are towards starting your own business. I think if you have the right business idea and the right skills to make it successful, that would be a natural path. I would be concerned about starting a business just because you don’t see an available alternative that you like. You have enough assets now to probably never work again, especially if your wife returns to teaching in a few years. However, great sums have been lost by people try to start their own business. Doing nothing is financially better than losing a million dollars on a failed business.

Yeah, this is why I think the "go get a standard job" route is a better option than pretty much all my friends and many here do. Business success is hard and often financially risky.

I am thinking more along the lines of a franchise business. Something where you buy yourself a job but if you are smart about it you can scale it up a bit and eventually just buy yourself a job managing a group of small businesses.

If you don't have any specific direction you feel drawn towards, I would get whatever the job is you feel you can get through your personal network. Once you get into the workforce I imagine you'll have a better feel about what sort of work/position you want to be in, or at least what you don't like.
I would think that you might be able to 'build your own thing' while you have a job as well, if 'your own thing' takes off, you can always quit the day job.

If I were you, I would think long and hard about how your decision will affect your child(ren). I would make damned sure my children didn't see me as lazy, without passion, or without direction despite my early success, for fear that they would emulate my example.

Remember, they will not know the person who created this success. They will only know the person you'll become in the next phase of your life.

This is actually my biggest concern. I want to set a good example for my kids and I feel like it would be really hard to teach them a lot of things while living a semi life of leisure.

There's a whole community of financially independent early retired folks with kids. You may want to check out some blogs or get on some of those discussion boards to get some ideas and perspective. The MMM forum is pretty active.

"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

I am in a very similar situation, but just a few years older with the luck of saving 80% of my pay and investing over the years. I have 5mm asset (60% in the mkt; rest is in rental and home equity). Our spending is also 100k- 120k per year and a young toddler at home. I am debating what will be next for me. Looking at standard job option with the decent benefit and high 5 figure/ low 6 figure job. I plan to work for another 10 years for the following purposes:
1. to let money grow
2. Role model for kid
3. I have sth to do
4. Healthcare and benefits
5. Flexibility of sending my kid to private school later

Hopefully this can help!!! But sometime I do wonder why I am trying so hard to get a job, but looking for the job you would like to do is a full time job to say the least.

I can't imagine anyone having that level of success at your age ever enjoying going to work for someone else making +/- 100k. There's a lot of soul crushing nonsense that goes on in the corporate world at that level.

+1

On the other hand, if you have $3mn in the bank, it's easy to let the nonsense slide off you.

My suggestions would be:
1. Get out of the HCOL area.
2. Find a passion that might or might not lead to income immediately.

I'm not sure what kind of network you have, but I'd look for a few people to do a startup that isn't capital intensive. If you'd like to bide your time for a bit, going back to school in some capacity (even part time) is a good way to have a reason to put on a fresh set of pants every day. You don't want to end up in a situation where you are consistently wearing pajamas in the afternoon.

I'm in a unique position financially and there's not a lot of people I feel like I can talk to about the topic. Any advice is appreciated.

I'm 33, live in HCOL area, with a net worth of about 3.2M (400k SEP IRA, 2.5M index funds, $300k cash/misc). No debt. Renting. Married with an infant at home. Spend about $120k/year (plan to move to a less expensive area next year, probably will cut expenses to about $95-100k).

I made an income doing a few things that aren't likely to keep making me much money (it's not trading, but similar to the concept of if a trading market went away and successful traders in that market weren't earning much anymore). I have experience managing people and building small businesses, but they are very niche. In short, most would agree I'm a smart and hardworking person, but I probably don't have any single skill that checks a "we should hire this guy" box.

My wife works in education and would like to take some years off to raise the kid(s) (in other words, she will never be a significant earner). I feel like I am at a crossroads. We have enough money to be very comfortable but not enough to retire, I have no specific career path, no guaranteed income, and all the time in the world to explore new things. I realize this is a good problem to have, but it's still a problem.

I think I could network my way into a job that pays high 5 figures, maybe low 6 figures best case scenario. I also could use some of the money I've made to start something new (which I have done a couple of times before, albeit in a niche that no longer is a great opportunity). I know I can't get specific advice because I'm being vague about the career, but I'm really just looking for general advice on how people would approach this problem.

My feeling is that I would be happier trying to build my own thing which is what I have alway done, but that it's "now or never" to try to get a more traditional job and build normal work experience should I ever want or need to go the corporate route. I don't think it would be easy to get my first "real" job when I'm 40+, and it's already probably not that easy now.

I do realize that worst case scenario we can move to a lower cost of living area and basically retire (especially when wife goes back to work), but I would prefer not to do that. Thank you.

In your situation I would travel the world for four years, reading and seeing and feeling and exploring and learning. On significantly less than $100k per year. Try $50k per year. Then come home, put your kid in school, and do what you've learned you love.

1. Move from HCOL to LCOL
2. Cut expenses
3. "IF" you have the savy and knack for it, and a passion to do so for the "long term", and willingness to do "whatever it takes to succeed". . . consider exploring being a landlord for your own multi unit housing units. You can continue working while you do so. Done the traditional way, not high leveraged, "easy money approach", or other "finagling", R/E multi unit housing rentals can be a lucrative and/or long term career option. If you have the savvy, "grit" and fortitude to be a businessman, this is one area that may work for you.
*disclaimer : (it is not for everyone, or those who are not entrepreneurial or business inclined or needs structure and predictability)
4. Of course, balance the above with a solid "Bogle financial plan and 3 fund portfolio".
5. Along the lines of the above, cultivate multiple income streams (like tending a garden) that will grow and mature as years go by. You will be exceedingly ahead of the game.

aloha
j

Last edited by Sandtrap on Wed May 30, 2018 9:16 pm, edited 1 time in total.

I'd focus on avoiding lifestyle creep first and foremost. I would be an eagle eye on expenses!

Beyond that I would try different careers (businesses, jobs, etc...) and see what sticks. You are very young. Try a few things. As long as you can keep your lifestyle modest you won't have to make a ton of money.

First and foremost. Based on your expenses you are officially financially independent. Congratulations, you never have to work another day of your life and the chance of you not running out of money is in the high 99% range based on history which incorporates some horrible financial times like the Great Depression. You really need to appreciate that statement and understand that whatever you do should not be about money but about health, happiness and raising happy and healthy kids.

Consider working in a bike shop part time if you like bikes. Maybe an audio video shop if that is what you enjoy. Maybe take a class or two. The world is at your fingertips. All you need to do is go out and get it.

If I were you, I would think long and hard about how your decision will affect your child(ren). I would make damned sure my children didn't see me as lazy, without passion, or without direction despite my early success, for fear that they would emulate my example.

Remember, they will not know the person who created this success. They will only know the person you'll become in the next phase of your life.

+1

My thoughts exactly. Plus it is impossible for a person who creates his own wealth to idle in young age. Find your passion and go to school/take a job or business - you need a daily schedule. Finance is secondary here
.
Early retirement works only if your family is on board with your decision. Will your mind be at peace for such a long frame to not work/work below your potential even if you have the finances?

I've been reading this forum for more than a year and decided to register after reading your post. I'm in the same exact situation. Around the same amount of money, but 40 years old. I did affiliate marketing for almost 10 years. I don't have any advice, I tried living on the beach for 1 year, but it was boring. I have a bunch of free time, and it seems that I can't get myself into a new career or business after I made money online. I loved my career but died slowly. After I realized my business had days counted I moved to a low cost of living area.

I am thinking more along the lines of a franchise business. Something where you buy yourself a job but if you are smart about it you can scale it up a bit and eventually just buy yourself a job managing a group of small businesses.

That would work to your goal.

And if that "general idea" appeals to you, you may be interested in real estate investing, particularly if you may be moving to a lower cost of living area. Plenty to learn, plenty to manage (if you want. And can start by managing a lot and hire out as you grow/age), and plenty to earn in that field. Owning multiple properties can be seen as managing multiple businesses. Just a thought.

Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

- "Find your passion"....I keep seeing that phrase here, but it's easier said than done in my opinion. And often our passions can't be easily translated into work or a higher purpose (I love watching my favorite sports team, but I'm not sure how to make money at it and it surely isn't helping others!).

- "Stay at home with your infant".....I see that advice given too. But isn't your wife doing that? While I'm sure she would appreciate the extra pair of hands, it can be too much of a good thing if you are both at home full time. One or both of you will get bored eventually. Now if you plan on having three or four more kids in quick succession, then I can see the value of taking the next few years off as multiple infants/toddlers is indeed a huge amount of work, but overall it seems impractical if that's what your wife wants to do and you aren't striving toward having lots of kids.

- I like the advice some folks have given to just go out and try stuff. You don't have to worry about pay and I'm sure you have built up some skills that are transferable to other professions. Just go get a fairly steady job doing something and see what you learn from it. If it's a terrible fit/experience, well, then move onto try something else. In the meantime, you have added something to your resume.

Congratulations! I agree with others about "finding your passion". We didn't have 3M, but we realized that we didn't have to keep saving at the rate that we were and we didn't need the high income that DH had (and all the stress that came with it)....he could take any job he wanted. So, he took a little over a year off and did a little bit of soul searching to figure out what he wanted to do. He picked a career I would have NEVER expected him to pick and I don't think he would have ever picked it right out of college either for himself but he LOVES it. The pay is much much lower, but even with our large family, we are still able to afford it, especially knowing we have all the money in the bank if we need to touch it with an emergency. That is the great thing about having that much money. You have the funds to essentially do anything you want. So, find you passion...something that you will WANT to jump out of bed each morning and do. My DH is so much happier now and so glad he made the change 8 years ago. Good luck to you!

There's a whole community of financially independent early retired folks with kids. You may want to check out some blogs or get on some of those discussion boards to get some ideas and perspective. The MMM forum is pretty active.

Thank you. Do you have any specific ones that you recommend?

I've read a bunch of MMM and listened to probably a dozen FI podcast episodes. The issue I keep coming back to is almost all of these people are way more "extreme" about FI than I would like to be. I don't want to constantly bargain hunt or spend my life doing manual labor teaching my kids the value of that. I also believe the world is likely to change enough to where I'll probably want to "stay relevant" just in case I have miscalculated and need to earn money or just want to feel somewhat normal.

Maybe I need to spend more time on those forums. There probably are less extreme FI people that I just haven't come into contact with yet.

Join the National Guard or reserves. Work one weekend a month, do some fun things, get subsidized comprehensive family healthcare for $210/month regardless of your age. Travel opportunities, temporary full-time work opportunities, get paid to work out, etc.

Spend the rest of your time with your family, traveling, and enjoying life.

I am in a very similar situation, but just a few years older with the luck of saving 80% of my pay and investing over the years. I have 5mm asset (60% in the mkt; rest is in rental and home equity). Our spending is also 100k- 120k per year and a young toddler at home. I am debating what will be next for me. Looking at standard job option with the decent benefit and high 5 figure/ low 6 figure job. I plan to work for another 10 years for the following purposes:
1. to let money grow
2. Role model for kid
3. I have sth to do
4. Healthcare and benefits
5. Flexibility of sending my kid to private school later

Hopefully this can help!!! But sometime I do wonder why I am trying so hard to get a job, but looking for the job you would like to do is a full time job to say the least.

BTW, my spouse also works as well ( makes about 100k)

Thanks. With your wife making $100k and $5mm in assets you seem ridiculously well set up. Have you considered a franchise business or some other low(er) risk lifestyle type business that you could self fund? I feel like that would be a great way to show kids the value of working hard and ownership, while (potentially) not giving yourself a ridiculously stressful life.

This deserves more discussion. Why? Is your goal to leave the whole thing to heirs? That changes things dramatically.

If I was 60+ then I would have no problems with this. I just think there's too many unknowns given I hope to live for 50 more years and I should be in the most productive earning years of my life for the next decade. And no, my goal is to have enough money to fund kid's college but that's it absent some extenuating circumstances.

3. "IF" you have the savy and knack for it, and a passion to do so for the "long term", and willingness to do "whatever it takes to succeed". . . consider exploring being a landlord for your own multi unit housing units. You can continue working while you do so. Done the traditional way, not high leveraged, "easy money approach", or other "finagling", R/E multi unit housing rentals can be a lucrative and/or long term career option. If you have the savvy, "grit" and fortitude to be a businessman, this is one area that may work for you.
*disclaimer : (it is not for everyone, or those who are not entrepreneurial or business inclined or needs structure and predictability)

Real estate does seem like a good option. I have a friend in real estate tell me basically the same thing. Thank you.

If I were you, I would think long and hard about how your decision will affect your child(ren). I would make damned sure my children didn't see me as lazy, without passion, or without direction despite my early success, for fear that they would emulate my example.

Remember, they will not know the person who created this success. They will only know the person you'll become in the next phase of your life.

+1

My thoughts exactly. Plus it is impossible for a person who creates his own wealth to idle in young age. Find your passion and go to school/take a job or business - you need a daily schedule. Finance is secondary here
.
Early retirement works only if your family is on board with your decision. Will your mind be at peace for such a long frame to not work/work below your potential even if you have the finances?

My wife is on board with doing whatever it is that makes me happy. All else equal she'd prefer a LCOL area with me doing less work and spending more time enjoying life. There were some periods of time that I got very stressed out and she doesn't want to see that again. I agree in general that this is more about what will make us happy than thinking about the money, but it's hard for me and frankly I think silly to discount the money aspect.

Also as I am thinking about this, I don't think I would be that happy with an easy job where my mind could just wander. I enjoy difficult things. I would just not like it to be 80 hours a week and ideally it would be a pretty low stress but still difficult job

I've been reading this forum for more than a year and decided to register after reading your post. I'm in the same exact situation. Around the same amount of money, but 40 years old. I did affiliate marketing for almost 10 years. I don't have any advice, I tried living on the beach for 1 year, but it was boring. I have a bunch of free time, and it seems that I can't get myself into a new career or business after I made money online. I loved my career but died slowly. After I realized my business had days counted I moved to a low cost of living area.

How do you enjoy the new area? What do you do with your free time? What other jobs or careers have you tried?